Wealthy clients boost UBS profits

UBS has been looking beyond Europe

Swiss banking group UBS has reported a better-than-expected rise in profits, boosted by fees for wealthy clients.

UBS saw reported net profits for the second quarter of 3.147bn Swiss francs ($2.54bn; £1.34bn), up 47% on the same period last year.

The bank expects 2006 to be "another year of strong results", but said business could slow in the second half.

Earlier in the year, UBS made several acquisitions to increase its reach, in both Brazil and the US.

UBS - Europe's second-largest bank - announced its acquisition in May of Brazil's last independent bank, Banco Pactual, for $2.5bn.

The move should give UBS a vital role in Brazil's asset and wealth management sectors.

The Swiss bank also bought Piper Jaffray's brokerage arm in the US for $500m to enable to firm to access rich clients.

"[UBS] looks very strong in fixed income trading and in private banking", said Matthew Clark, an analyst at Keefe Bruyette and Woods, in response to the latest results.